## **APPENDIX 1**
## **ST MARGARET’S HORSMONDEN**
## **PAROCHIAL CHURCH COUNCIL**
**Report and Accounts for the Year Ended 31 December 2021**
## **ST MARGARET'S HORSMONDEN PCC**
## **Report of the PCC for the year ended 31 December 2021**
## **Status and Administration**
St Margaret's Horsmonden Parochial Church Council is registered with the Charity Commission in England & Wales under the charity registration number 1188677 and in accordance with the Parochial Church Council Powers Measure (1956) as amended and the Church Representation Rules that came into effect on 2 January 1956.
## **Charitable Objects**
Promoting in the Ecclesiastical Parish of Horsmonden, the whole mission of the Church.
## **Officers & Key Management Personnel**
The Revds Tim and Trish ffrench (Incumbents) Dennis Asplin (Warden) Steve Jones (Warden & Treasurer from 12 May 2021) Robin Black (Treasurer) resigned 12 May 2021 Valerie Holloway Sue Huzzey Angie Jenkins Erica Jones Roger Marsh Bob Norton (co-opted from 9 June 2021)
Kate Hart-Dyke (Administrator until September) Miranda Hungerford (Administrator from September) Jan Cobley (PCC Secretary)
Nick Gerard-Pearse (Chairman, Building Committee)
## **Representatives on the Deanery Synod**
Erica Jones
## **Independent Examiner**
Martin Cobley
## **Quinquennial Inspector & Building Consultant**
John Bailey, Thomas Ford & Partners Ltd
## **Trustees' Statement**
With the continuation of the Covid pandemic in the United Kingdom it has been another challenging year, operating under UK Government restrictions and guidance from the Church of England. The inability for us to gather as a community in St Margaret's and the Church Hall for much of the year has again been much regretted by all, but the Trustees have taken appropriate steps to ensure the continued provision of religious services and support to our community through extensive use of on-line digital means. We are delighted that the PCC has received excellent feedback on this provision.
The PCC met 9 times during the year, with average attendance of 85%. If Revd Trish ffrench is excused as ‘job-sharing’ with Revd Tim ffrench, and Valerie Holloway is excused as she is unable to participate in Zoom meetings, then the attendance rises to 94%.
The Annual Parochial Church Meeting was held on 12th May 2021.
During the year, a Vision and Strategy sub-committee was set up to plan for our growth and development over the next 3 to 5 years, with particular reference to our planned link with Lamberhurst when the present incumbents retire.
## **Patterns of Worship**
When the year started there were no services in church due to Covid lock-down rules, but we provided an online service on the St. Margaret’s Facebook page most Sundays. Services in church re-started on 21st March at 9.30am, with the online service from the Rectory moving to 10.45am. To accommodate different
1
styles of worship, the united service in church was Prayer Book Holy Communion on the first and third Sundays of the month, Family Service on the second Sunday and Informal Worship on the fourth. Attendance in church has gradually picked up from around 25 to the high 30s. Covid restrictions (wearing masks, social distancing, wafers only at Communion, and no singing) were gradually lifted until some were re-imposed in December due to the Omicron variant. Also for this reason, the larger Christmas services (Carols by Candlelight and the Midnight Communion) were cancelled, but the Crib Service and Christmas Day Communion went ahead.
Thanks to a generous donation, the church has been connected to fibre-optic broadband and there are plans to install a camera system linked to the sound system to enable live-streaming of services.
## **Pastoral Support**
Throughout most of the pandemic, pastoral support has been provided through informal networks, in particular the ‘St M’s Catch-up’ WhatsApp group. The three Connect groups restarted during the autumn.
## **Youth and Children’s Ministry**
During the pandemic, many of our Youth and Children’s activities had to stop, but the Family Service with activities resumed, with some restrictions, on the second Sunday of the month; Playtime (for parents and toddlers) operated in June, July and the autumn term; Woodland Connect re-started in October at a new time of 10.30am to 12.30pm on the first Sunday of the month; Well@5 did not meet, but is planned to restart with a new team leading it.
It looks likely that the Youth Drop-in will not be able to restart since our Youth Worker, Mike King, moved away during the pandemic and our Community worker, Hilary Marshall, has ended her secondment to us.
Good progress has been made on the Community Garden, with a good team running it, though unfortunately, because of the pandemic, the formal opening by Greg Clark MP has been postponed.
## **Buildings**
Our plans for re-developing the church building were delayed by the pandemic as the Diocesan Advisory Council (DAC) were not able to come for a site visit until June, and their heavy workload meant we did not receive a response until September. However the response was broadly favourable, so our Architects (Thomas Ford & partners) are drawing up more detailed plans for the DAC and to submit for Local Authority planning permission.
John Bailey (of Thomas Ford) carried out the Quinquennial Inspection in February 2021. We were expecting that repairs would be needed on the tower, the internal timbers of the nave and chancel roofs, stained glass windows and some external stonework. However the work required is not as extensive as first thought. It is planned to start work on repairs to the tower shortly.
## **Financial Review**
## Income
Financially, Covid has continued to impact negatively on income with a lower corresponding reduction in costs as many of these are fixed. As we have been able to return to worshiping in church, the PCC agreed to recommence plate collections in services as we considered how best to approach Covid restrictions. We have also seen a continued growth in numbers giving by standing order, and an increasing percentage of giving has been eligible for gift aid claims.
Our income was also boosted by receiving the final distribution of a legacy amounting to £10,875, the first part of which was received in 2019. This helped actual income to exceed budget, but legacies are impossible to budget for and we will have to work hard to maintain income going forward.
Finally, with regard to income, in early December (a week or so ahead of concern over the Omicron variant) a Green Christmas Market was held in the Village Hall. This was a very positive and enjoyable event raising almost £2,500.
## Expenditure
On the cost front, the PCC has managed its cost base sensibly, reducing total expenditure (where possible) by £1,651 to £68,417 despite an increase of 2.9% in the Parish Offer to £39,709 which represents our single largest expense at 58% of total expenditure. Due to a change in calculation methodology, it is anticipated that the Parish Offer will be slightly less in 2022 despite significant increases in inflation. The PCC is also pleased to report that our support for Christian based charities has been increased to £1,215, which includes donations to Medair, helped in part by donations from a frugal lunch, and to Release International.
2
## Surplus and Balances
The resultant surplus of £16,362 after transfer of £5,600 to the designated Church Repair Fund is highly encouraging in very difficult circumstances, and has seen the unrestricted reserves increase to £62,778 (2020 £46,416).
We also hold a number of restricted funds totalling £18,579. These funds consist of donations generously given by donors which can only be used for specific purposes, which include improvements to the church building, and other ministry purposes mentioned in the financial statements.
Finally, the plans to upgrade the church that are being developed with our Inspecting Architects, Thomas Ford & Partners, will require a significant fundraising commitment. Details of the plans will be communicated over the coming months, but the first phase in the project will be to repair the tower roof, timbers and some stonework as identified in the Quinquennial inspection carried out at the beginning of 2021. Costs for the tower work will come from a combination of the Church Repair Fund which, at year end, stood at £60,359, and grant applications to funds currently making donations for such work.
Approved by the Parochial Church Council on 10 April 2022 and signed on its behalf by
Revd Tim ffrench Chairman
3
## **ST MARGARET'S HORSMONDEN PCC**
## **ACCOUNTS FOR YEAR ENDED 31 DECEMBER 2021**
4
## **PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN**
## **STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021**
||||||**TOTAL**|TOTAL|
|---|---|---|---|---|---|---|
|||Unrestricted|Designated|Restricted|**FUNDS**|FUNDS|
||Notes|Funds|Funds|Funds|**2021**|2020|
|||£|£|£|**£**|£|
|**INCOME**|||||||
|Voluntary income|2a|83,502|0|7,621|**91,123**|87,780|
|Activities for generating funds|2b|2,513||194|**2,706**|2,724|
|Deposit interest|2c||64||**64**|94|
|Church activities|2d|4,364|||**4,364**|6,168|
|Other income|2e||||**0**|0|
|**Total Income**||90,379|64|7,814|**98,257**|96,766|
|**EXPENDITURE**|||||||
|Church activities|3a|68,289|0|2,242|**70,532**|78,057|
|Raising funds|3b|127|||**127**|0|
|**Total Expenditure**||68,417|0|2,242|**70,659**|78,057|
|Net income/(expenditure)||21,962|64|5,572|27,598|18,710|
|Transfers between funds||(5,600)|5,600||**0**|0|
|Net movement in funds||16,362|5,664|5,572|27,598|18,710|
||||||||
|**Total funds b/fwd at 1 January 2021**||46,416|129,759|13,007|**189,182**|170,473|
||||||||
|**Total funds c/fwd at 31 December 2021**||62,778|135,423|18,579|**216,781**|189,182|
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## **PAROCHIAL CHURCH OF ST MARGARET'S HORSMONDEN**
## **STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020 for comparative purposes**
||||||**TOTAL**|
|---|---|---|---|---|---|
|||Unrestricted|Designated|Restricted|**FUNDS**|
||Notes|Funds|Funds|Funds|**2020**|
|||£|£|£|**£**|
|**INCOME**||||||
|Voluntary income|2a|81,276|50|6,454|**87,780**|
|Activities for generating funds|2b|984||1,740|**2,724**|
|Deposit interest|2c||94||**94**|
|Church activities|2d|6,168|||**6,168**|
|Other income|2e||||**0**|
|**Total Income**||88,428|144|8,194|**96,766**|
|**EXPENDITURE**||||||
|Church activities|3a|70,068|6,180|1,809|**78,057**|
|Raising funds|3b||||**0**|
|**Total Expenditure**||70,068|6,180|1,809|**78,057**|
|Net income/(expenditure)||18,360|(6,036)|6,385|18,710|
|Transfers between funds||(5,600)|5,600|||
|Net movement in funds||12,760|(436)|6,385|18,710|
|||||||
|**Total funds b/fwd at 1 January 2020**||33,656|130,195|6,622|**170,473**|
|||||||
|**Total funds c/fwd at 31 December 2020**||46,416|129,759|13,007|**189,182**|
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## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **BALANCE SHEET as at 31 December 2021**
|Notes
**FIXED ASSETS**
Tangible fixed assets
5
**Total Fixed Assets**
**CURRENT ASSETS**
Debtors
7
Short term deposits
Cash at bank and in hand
**Total Current Assets**
**LIABILITIES**
Creditors-amounts falling due within 1 year
8a
**NET ASSETS**
**PARISH FUNDS**
Unrestricted
9, 10
Designated
9, 10
Other Restricted Funds
9, 10
**TOTAL FUNDS**|5,040
39,748
97,905|**2021**
2020
**£**
£
**75,000**
75,000|
|---|---|---|
|||**75,000**
75,000
3,538
34,084
77,319
**142,693**
114,940
**(912)**
(758)|
||||
|||**216,781**
189,182|
|||**62,778**
46,416
**135,423**
129,759
**18,579**
13,007|
|||**216,780**
189,182|
Approved by the Parochial Church Council on 10 April 2022 and signed on its behalf by:
Revd Tim ffrench Chairman
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**PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021**
## **1 ACCOUNTING POLICIES**
## _Basis of preparation_
The financial statements have been prepared under the current Church Accounting Regulations and comply with the current Charities SORP and applicable accounting standard FRS 102.
## **a** _**INCOME**_
## _Recognition of Income_
This is included in the Statement of Financial Activities (SOFA) when the PCC becomes legally entitled to the benefit of use of the income, the benefit is quantifiable and probable.
## _Fundraising costs_
Funds raised from events (eg Christmas Fair, Art Exhibition and bookstall sales) are reported gross in the SOFA, i.e. before any related costs have been deducted from the gross proceeds.
## _Grants and donations_
These are included in the SOFA when any preconditions preventing their use by the PCC have been met. For collections and planned giving, this is when the funds are received.
## _Gift Aid Tax claims etc on cash donations_
These are in included in the SOFA at the same time as the cash donations to which they relate.
## _Volunteer help_
The value of any voluntary help received is not included in the Accounts but is described in the Trustees' Annual Report.
## _Church hall rental_
This is recognised when received.
## _Investment income_
The interest entitlement on the church repair fund is recognised when received.
## **b** _**EXPENDITURE AND LIABILITIES**_
_Liability Recognition_
Liabilities are recognised as soon as there is a legal or constructive obligation and settlement is probable and quantifiable.
## _Grants_
These are recognised in the accounts when a commitment has been made externally and there are no preconditions still to be met for entitlement to the grant that remain within the control of the PCC.
## **c** _**ASSETS**_
## _Consecrated and benefice property_
In so far as consecrated and benefice property of any kind is excluded from the statutory definition of 'charity' by Section 10(2) (a) and (c) of the Charities Act 2011, such assets are not capitalised in the financial statements.
## _Moveable church furnishings_
These are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case, the item is not capitalised but all items are included in the church's inventory in any case.
8
## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## _**ASSETS (continued)**_
## _Depreciation_
No depreciation is provided on the church hall as the currently estimated residual value is not less than its carrying value and the remaining useful life of the hall currently exceeds 50 years, so that any depreciation charge would be immaterial. An impairment review is carried out each year end and any resultant loss identified included in the expenditure for that year. There were no items in the accounting period subect to depreciation.
## _Short term deposits_
Include cash held on deposit with the CCLA Church of England Funds.
## **d** _**FUNDS**_
## _Unrestricted funds_
These include the remaining income funds of the PCC that are available for spending on the general purposes of the PCC, including amounts designated by the PCC for fixed assets for its own use or for spending on a future project and that are therefore not included in its 'free reserves' as disclosed in the trustees' report.
## _Restricted funds_
These are income funds that must be spent on restricted purposes and details of the funds held and restrictions provided are shown in the notes to the accounts.
9
## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
**NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **2 INCOME**
|**a**
**_Voluntary Income_**
Direct giving
GA envelopes
Income tax recoverable
Other donations
Collections at all services
Grants
Legacies
**b**
**_Activities for Generating Funds_**
Fundraising
**c**
**_Investment Income_**
Deposit interest
**d**
**_Income from Church Activities_**
Church hall lettings
Weddings, funerals and memorial fees
Parish News
**e**
**_Other Incoming Resources_**
Miscellaneous
**TOTAL INCOME**|**TOTAL**
TOTAL
Unrestricted Designated
Restricted
**FUNDS**
Unrestricted Designated
Restricted
FUNDS
Funds
Funds
Funds
**2021**
Funds
Funds
Funds
2020
£
£
£
**£**
£
£
£
£
54,264
**54,264**
53,109
53,109
0
**0**
230
230
14,641
**14,641**
13,723
13,723
2,408
7,121
**9,529**
9,759
50
5,182
14,991
1,314
**1,314**
1,155
1,155
500
**500**
3,300
1,272
4,572
10,875
**10,875**
0|
|---|---|
||83,502
0
7,621
**91,123**
81,276
0
6,454
87,780|
|||
||2,513
194
**2,706**
984
1,740
2,724|
|||
||64
**64**
94
94|
||100
**100**
460
460
4,264
**4,264**
3,948
3,948
**0**
1,760
1,760|
||4,364
**4,364**
6,168
6,168|
|||
||**0**
0
0|
|||
||**90,379**
**64**
**7,814**
**98,257**
88,428
94
8,194
96,766|
10
## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **3 EXPENDITURE**
|**3**
**EXPENDITURE**||
|---|---|
|**a**
**_Church activities_**
Missionary and charitable giving:
Ministry:
Parish Offer
Rector expenses
Rectory council tax/utilities
Other ministry
Church Running Expenses:
Utilities
Insurance
Repairs and maintenance
Churchyard maintenance
Toilet hire
Upkeep of services
Parish administrator
General administration
Church Hall Running Expenses:
Utilities
Repairs and maintenance
Other expenditure:
Outreach/Youthworker
Refreshments
Miscellaneous
**b**
**_Raising funds_**
Fundraising Costs
**TOTAL EXPENDITURE**|**TOTAL**
TOTAL
Unrestricted Designated
Restricted
**FUNDS**
Unrestricted Designated
Restricted
FUNDS
Funds
Funds
Funds
**2021**
Funds
Funds
Funds
2020
£
£
£
**£**
£
£
£
£
1,215
**1,215**
0
0
39,709
**39,709**
38,584
38,584
1,128
**1,128**
1,039
1,039
3,494
**3,494**
3,459
3,459
810
**810**
54
54
424
**424**
1,604
1,604
4,860
**4,860**
4,943
4,943
2,562
1,230
**3,792**
589
6,180
834
7,603
5,760
1,012
**6,772**
4,499
974
5,473
60
**60**
240
240
1,769
**1,769**
2,492
2,492
3,080
**3,080**
3,402
3,402
1,537
**1,537**
2,009
2,009
864
**864**
401
401
481
**481**
504
504
325
**325**
6,212
6,212
112
**112**
37
37
100
**100**
0|
||68,289
0
2,242
**70,532**
70,068
6,180
1,809
78,057|
|||
||127
**127**
0|
|||
||**68,417**
**0**
**2,242**
**70,659**
70,068
6,180
1,809
78,057|
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**PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
|**4**|**STAFF COSTS**|||
|---|---|---|---|
|**a**|**_Wages and Salaries_**|**TOTAL**|TOTAL|
|||**FUNDS**|FUNDS|
|||**2021**|2020|
|||**£**|£|
||Parish Administrator|**0**|3,402|
The PCC shares a part-time administrator with Lamberhurst PCC, who are the employer and make all the PAYE deductions required.
**b** _**Payments to PCC Members**_ No payments, other than reimbursement of expenses, were made to members of the PCC.
The total of donations made to the PCC by PCC members during 2021 was £44,462 (£28,365 2020).
## **5 TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**||
|---|---|
|**Valuation**
**Net book amounts**
**at 31 December 2021**|Freehold Land
and Buildings
**£**
**75,000**
75,000|
||**75,000**
75,000|
The freehold land and buildings comprise the Church Hall and the value represents the valuation by Smiths Gore in November 2013. This is now treated as the deemed cost.
## **6 INVESTMENTS**
The PCC does not currently hold any investment assets.
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## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
**NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **7 CURRENT ASSETS**
|**7**
**CURRENT ASSETS**||
|---|---|
|**_Debtors_**
Income tax recoverable
Miscellaneous
**8**
**LIABILITIES**
**a**
**_Creditors_**
_Amounts falling due within one year:_
General Creditors
**9**
**FUNDS**
**_Analysis of Net Assets by Fund_**
Fixed assets for church use
Current assets
Current liabilities
Long term liabilities|**TOTAL**
TOTAL
Unrestricted
Designated
Restricted
**FUNDS**
Unrestricted
Designated
Restricted
FUNDS
Funds
Funds
Funds
**2021**
Funds
Funds
Funds
2020
£
£
£
**£**
£
£
£
£
5,040
**5,040**
3,038
3,038
0
500|
||5,040
0
**5,040**
3,538
0
3,038|
||360
552
**912**
200
558
758
0
0
**0**
0
0
0|
||360
552
**912**
200
558
758|
||75,000
**75,000**
75,000
75,000
63,138
60,423
19,131
**142,693**
46,616
54,759
13,565
114,940
(360)
(552)
**(912)**
(200)
(558)
(758)|
||62,778
135,423
18,579
**216,781**
46,416
129,759
13,007
189,182|
## _**Restricted Funds**_
These funds are to be used for the maintenance, upkeep, refurbishment or development of the property in accordance with the terms specified by the donor.
They comprise:
(a) Church Fund is now being used for the New Project.
(b) Community Garden Fund, for monies received towards this project
(c) Lectern Fund, for monies received towards this project
(d) Memorial Garden Fund for monies received towards this project
(e) Video Streaming Fund for monies received towards this project
(f) Woodland/HYA Fund for monies received towards this project.
13
## **PAROCHIAL CHURCH COUNCIL OF ST MARGARET'S HORSMONDEN**
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
|**10 STATEMENT OF FUNDS**
**_Unrestricted Funds_**
General Fund
**_Designated Funds_**
Fabric Fund
Church Hall Property Fund
**_Restricted Funds_**
Church Fund
Community Garden
Lectern Fund
Memorial Garden
Video Streaming
Woodland/HYA
Total Funds|Balance
Transfers,
**Balance**
b/fwd
other gains
**c/fwd**
1 Jan 2021
Income
Expenditure
and losses **31 Dec 2021**
£
£
£
£
**£**
46,416
90,379
(68,417)
(5,600)
**62,778**|
|---|---|
||46,416
90,379
(68,417)
(5,600)
**62,778**|
||54,759
64
0
5,600
**60,423**
75,000
0
0
0
**75,000**|
||129,759
64
0
5,600
**135,423**|
||7,850
100
(1,230)
0
**6,720**
1,254
464
(954)
0
**763**
0
500
0
0
**500**
2,068
0
0
0
**2,068**
0
6,651
0
0
**6,651**
1,836
100
(58)
0
**1,878**|
||13,007
7,814
(2,242)
0
**18,579**|
|||
||189,182
98,257
(70,659)
0
**216,781**|
## **Reserves Policy**
It is PCC policy to maintain a balance on liquid unrestricted funds (if possible) which equates to at least 3 months' unrestricted payments, to cover emergency situations. The current balance on 'liquid' unrestricted funds at the year end, equates to approximately 22 months' of unrestricted payments.
14